What investment type is described as being "the riskiest"?

Futures are considered the riskiest type of investment due to their structure and the inherent leverage involved. A futures contract is an agreement to buy or sell an asset at a predetermined future date and price. This means that investors are obligated to fulfill the contract, regardless of market conditions at the time of expiration.

The leverage associated with futures contracts can result in significant rewards, but it also means that losses can accumulate rapidly. Investors can lose more than their initial investment if the market moves against them. Additionally, futures involve a high degree of market volatility, which can further increase the risk. Therefore, the combination of leverage and volatility makes futures the most risky among the investment types listed.

In comparison, bonds are generally considered safer because they provide fixed income and return of principal at maturity. Real estate can also provide a more stable investment with potential for appreciation over time, and mutual funds, while they carry some risk, are diversified investments that spread out exposure to various underlying assets, reducing overall risk. These factors contribute to why futures stand out as the riskiest option.